(Web Hosting News) Momentum Advanced Solutions, Inc. (TSX: WWW), a leader in IT hosting and interactive services, announced today that it has launched a wholly owned subsidiary designed to provide hosting solutions for North American small and mid-sized business. Addressing the needs of a burgeoning marketplace for these services, Ultrahosting (www.ultrahosting.com) provides North American SMBs with a comprehensive set of IT hosting services including managed hosting, dedicated hosting, and co-location services.

In launching Ultrahosting, Momentum is recognizing the strong demand for high quality hosting services expressed by SMBs across North America. According to Tier 1 research, the market for managed and dedicated hosting services will grow to approximately $29 billion by 2010. In addition, AMI Partners reports that the aggregate $300 billion SMB marketplace is the IT industry’s largest and fastest growing segment. Momentum traditionally addresses the more complex enterprise-level hosting marketplace.

SMBs spend more proportionately than large enterprises on web-based, interactive technology. Buying this technology and support as a service has proven to be a more cost-effective option for SMBs, given their limited resources, than investing in computing assets and infrastructures. Momentum will make significant investments in on-line marketing to promote Ultrahosting’s services and acquire customers.

“We’re investing heavily in marketing because we believe that if we deliver outstanding support to SMBs actively pursuing managed services, we’ll mitigate the initial marketing costs by the life-time value they generate,” says Phil DeLeon, president of Momentum. He adds, “Our mission is to launch an on-line marketing program that establishes Ultrahosting as the brand of choice for this growing market place.”

Ultrahosting will leverage Momentum’s comprehensive technical resources including its two Toronto-based, high-density data centers and its more than 200 technical certifications, which the company has acquired while supporting enterprise-level customers.

“These resources provide a tremendous competitive advantage for Ultrahosting and for its customers. North American SMBS will benefit from Momentum’s technical expertise and our large pool of technical talent as well as from a well-situated computing infrastructure. We’re located in a region of the continent offering high quality, low priced power and world-class telecommunications networks,” says DeLeon.

About Momentum
Momentum is a leader in Web site managed hosting and outsourcing services. Its solutions provide customers with the innovation, integration, and operations expertise needed to reduce costs successfully and/or improve productivity by outsourcing mission critical, web-based applications and Internet infrastructure management. Headquartered in Markham, Ontario, Momentum has offices in Ottawa, Windsor, and Toronto. For more information about Momentum’s services, please visit www.momentum.com.

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